Sony's Entry into the US Market

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Questions and Answers

What is the ultimate goal in a negotiation, according to the text?

To win a victory on the price term.

To create value and profit. (correct)

To get a specified level of quality for the money spent.

To achieve a low price.

What example does the text use to illustrate the importance of focusing on value rather than just price?

The negotiation process for cutting the price of records in the 1940s.

The power dynamics between CBS and local radio stations in the early days of radio broadcasting.

The conflict between Drexel Burnham Lambert and Salomon Brothers over the RJR Nabisco bid.

William Paley's strategy of giving away CBS's radio programming in exchange for advertising rights. (correct)

What is the suggested approach to setting goals for a negotiation?

Setting a high target to leverage your bargaining power.

Negotiating with a clear understanding of your underlying needs and interests.

Setting a specific, optimistic-but-justifiable target and committing to it. (correct)

Being realistic and flexible to adapt to changing circumstances.

What is the importance of carrying your goal with you into the negotiation?

To remind yourself of your underlying needs and interests. (D) Signup and view all the answers

What is the primary difference between goals and expectations?

Goals are driven by desire, while expectations are driven by a sense of entitlement. (A) Signup and view all the answers

What is a potential reason for a multibillion-dollar bid to collapse, as exemplified by the RJR Nabisco case?

A clash of egos and control issues related to personal ambition. (C) Signup and view all the answers

What is the primary message conveyed by the text regarding the importance of price in negotiation?

Price is often a secondary factor compared to value and profit. (B) Signup and view all the answers

What is the impact of expectations on negotiation outcomes?

Expectations provide conviction and confidence, influencing negotiating strategies. (C) Signup and view all the answers

What is the key takeaway regarding negotiation from the example of William Paley's success in the early days of radio broadcasting?

Focusing on value creation can lead to unexpected opportunities and success. (A) Signup and view all the answers

How does the example of Morita and Sony illustrate the transition from a goal to an expectation?

Morita's experience with Bulova convinced him that branding was more important than sales volume. (D) Signup and view all the answers

What does the text suggest as a key factor to consider when preparing for negotiation?

Analyzing your own underlying needs and interests. (B) Signup and view all the answers

What is the main reason why individuals often fail to exceed their goals in negotiations?

Negotiators are limited by the upper limit of their goals, preventing them from achieving more. (B) Signup and view all the answers

What is the role of preparation in developing strong expectations for negotiations?

Preparation allows negotiators to gather information and build a strong case for their goals. (B) Signup and view all the answers

What is the key difference between a goal and an expectation in terms of the impact of failing to achieve it?

Failing a goal is accepted with resignation, while failing an expectation is met with disappointment. (B) Signup and view all the answers

Which of the following statements is NOT supported by the text regarding the relationship between goals and expectations in negotiations?

Expectations are automatically formed based on past experiences. (B) Signup and view all the answers

What is the main message conveyed by the author through the example of parents and their children's college aspirations?

Parents' expectations can significantly influence their children's academic choices. (B) Signup and view all the answers

What is the first step recommended in the negotiation process?

Clearly define your own defendable target. (A) Signup and view all the answers

Why is it important to be specific when setting negotiating goals?

It provides a clearer picture of the market standards and comparable jobs. (C) Signup and view all the answers

What does the text suggest as a method to increase your psychological commitment to your negotiating goal?

Visualizing the feeling of achieving your goal. (D) Signup and view all the answers

What is the main benefit of being specific in setting negotiating goals?

It clarifies your own expectations and strengthens your commitment to achieving them. (B) Signup and view all the answers

How does the example of the MBA student contribute to the argument for setting specific goals?

It demonstrates how visualizing success can contribute to goal achievement. (A) Signup and view all the answers

What advice does the text offer to help you communicate your commitment to your goal?

Provide solid arguments and justification for your goals. (A) Signup and view all the answers

What does the text suggest as an important aspect of showing concern for the other party's perspective?

Understanding their needs and expectations. (D) Signup and view all the answers

What does the text suggest as a key strategy for effectively presenting your ideas in a negotiation?

Provide solid justification for your ideas and show concern for the other party's perspective. (A) Signup and view all the answers

What is a major factor that influences people to set modest goals?

A need to protect their self-esteem (B) Signup and view all the answers

What is the main difference between a 'wimp-win' and a 'win-win' negotiator?

A 'wimp-win' negotiator focuses on their own bottom line, while a 'win-win' negotiator has more ambitious goals. (D) Signup and view all the answers

What is a key factor that can lead to setting low goals due to insufficient information?

Failing to adequately research applicable standards (C) Signup and view all the answers

How can individuals overcome the negative feeling of dissatisfaction that often accompanies setting higher goals?

Gradually increasing the difficulty of goals over time (C) Signup and view all the answers

Which of the following is NOT a reason for low goal setting mentioned in the text?

Desire for a quick and effortless win (D) Signup and view all the answers

What is the primary reason for adjusting goals to reflect relationship concerns, as mentioned in the text?

To maintain a positive rapport with the other party (A) Signup and view all the answers

What is the suggested approach to setting ambitious goals that balances optimism with realism?

Moderating initial targets with realistic adjustments (A) Signup and view all the answers

What does the text suggest about the relationship between achieving ambitious goals and future goal setting?

Success leads to higher goals, while failure leads to lower goals. (A) Signup and view all the answers

In negotiations, what is a key suggestion for setting goals?

Clearly define underlying interests and needs (A) Signup and view all the answers

What impact does setting ambitious bargaining goals have on negotiation outcomes, according to the research mentioned?

Ambitious goals can lead to more favorable negotiation outcomes (C) Signup and view all the answers

In the experiment conducted by Siegel and Fouraker, what motivated negotiators to achieve specific bargaining goals?

The promise of a larger bonus for exceeding a more challenging target (B) Signup and view all the answers

What is a potential reason why people tend to set modest bargaining goals?

They fear rejection or failure in negotiation (B) Signup and view all the answers

Aside from financial rewards, what other factors might motivate individuals in negotiation?

All of the above (D) Signup and view all the answers

In the context of a bank merger, how does the position of the firm's name in the advertisement indicate the lead bank?

The name listed first indicates the lead bank (D) Signup and view all the answers

What does the content suggest about common negotiation pitfalls?

Focusing solely on price can neglect other important aspects (B) Signup and view all the answers

Based on the information provided, what is a crucial aspect of setting effective negotiation goals?

The need to be realistic and practical to ensure achievability (D) Signup and view all the answers

What was Sony's initial goal with the miniature transistor radio?

To establish Sony as a global brand known for innovative products. (D) Signup and view all the answers

What was the initial reaction of American companies to Sony's miniature transistor radio?

Skeptical, as they believed consumers preferred larger radios. (D) Signup and view all the answers

What condition did Bulova propose in their offer to buy 100,000 radios from Sony?

Sony would market the radios under the Bulova brand. (A) Signup and view all the answers

Why was Bulova's initial offer a 'deal of a lifetime' for Sony?

It would provide Sony with a significant source of funding. (A) Signup and view all the answers

What was the main point of conflict between Sony's long-term goal and Bulova's offer?

Sony wanted to sell the radio as an independent brand, while Bulova wanted to resell it under their own brand. (B) Signup and view all the answers

What was the main reason behind the Sony executive board's initial response to Morita's cable?

They believed it was a good business opportunity for Sony. (A) Signup and view all the answers

After considering the offer, Morita decided to reject Bulova's condition. What does this reveal about Morita's approach to negotiation?

He was willing to sacrifice short-term gains for long-term goals. (A) Signup and view all the answers

Why did the Bulova purchasing officer argue that the 'company name is a famous brand that has taken over fifty years to establish'?

To justify their requirement for Sony to sell under Bulova's brand. (C) Signup and view all the answers

Study Notes

Sony's Initial Entry into the US Market

Sony, a Japanese company, introduced a miniature transistor radio in 1955.
The radio was successful in Japan but Sony's leader, Akio Morita, aimed to enter the US market.
Morita initially faced resistance from US retailers who preferred larger radios.
Bulova, a respected American electronics company, offered to buy 100,000 radios.
The deal had a condition: Sony would manufacture the radios but Bulova would sell them under their brand name.
Morita rejected this as it conflicted with Sony's goal of establishing its brand independently.
Morita's board, however, encouraged him to accept the offer, despite this concern.
Morita ultimately refused the deal, opting to prioritize long-term brand building over immediate profit.

Morita and Bulova Negotiation

Bulova's condition was common in sales transactions, as brand recognition was crucial.
Morita argued that Sony’s brand name was new and would become recognized in the future.
Morita's decision demonstrated strong vision and commitment to brand building.
Morita's decision was perceived as bold amongst his board.
The decision to reject Bulova's offer ultimately benefited Sony's long-term growth in the US market successfully.

Importance of Setting Goals

Goals define what you want.
Specific and measurable goals are crucial for success.
High aspirations encourage negotiators.
Commitment to goals motivates and improves persuasiveness.
Setting realistic, yet ambitious goals is important.
Writing down your goals solidifies commitment.
Conveying your goals to others establishes resolve and expectations.

Negotiation Goals Vs. Bottom Lines

A goal is the highest expectation for achieving a negotiation.
A bottom line is the minimum acceptable level for a negotiation.
Goals are more flexible and allow negotiators to focus on the outcome and values.
Goals facilitate negotiation success.

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Description

Explore Sony's strategic decision-making as it attempted to penetrate the US market in the 1950s. This quiz delves into the negotiations between Sony's Akio Morita and Bulova, highlighting the importance of brand identity and long-term vision over immediate gains. Can you grasp the nuances of this pivotal moment in marketing history?